Energy companies are becoming major players in the cryptocurrency space.

Exxon Mobil Corp. is working on a project to use exhaust gas from its North Dakota oil wells to power bitcoin mining operations. Exxon Mobil Corp.  launched the project in January last year and is looking to build similar projects in Alaska, Nigeria, Argentina, Guyana and Germany.

A lot of idle gas goes to waste due to a lack of adequate pipeline facilities.Creusot is one of the companies trying to use idle natural gas to power bitcoin mining operations. According to reports, Exxon Mobil Corp. has reached a cooperation agreement with Creusot

.A recent report stated that publicly listed bitcoin miners are “constantly looking for expansion opportunities” and that they “plan to increase the hash rate at the fastest rate in 2022.” In fact, not only mining companies are looking for opportunities, but some energy giants are also starting to rise. In 2020, the international energy giant Equinor ASA decided to cooperate with Crusoe Energy Systems to use electricity for Bitcoin mining. In addition, some energy companies have begun to set up small test sites.

Using wasted gas in the bitcoin market could be a financial gain for energy companies, who can reap the dual benefits of oil and bitcoin at the same time.

Bitcoin mining difficulty is gradually increasing as more and more mining companies join the Bitcoin market. Computer equipment spending and electricity consumption are also increasing. The cost of electricity is the main factor that affects the earnings of Bitcoin miners. Some argue that the least efficient bitcoin miners will suffer in the future, and if electricity costs continue to rise, they won’t be able to make as much profit as before.

When more well-funded energy giants join mining, the impact on traditional miners will be more obvious and direct. According to an analysis by Bloomberg, as the profit margins of the bitcoin mining industry continue to shrink, energy companies that do not need to purchase electricity from external sources have gained an advantage over their competitors. Energy companies are becoming major players in the cryptocurrency space.